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How Are Rates Calculated?

This section contains information on

Domestic properties:

For domestic properties, the rateable capital value is multiplied by the total of the domestic regional rate and the domestic district rate. For example:

£125,000 (rateable capital value) x 00.005830 (the total of the domestic regional rate and the domestic district rate) = £728.75 (gross amount due).

If you get help to pay your bill (for example, Housing Benefit, Rate Relief, or transitional relief) we

  • take these off the gross amount (the amount before deductions are made) that is due, leaving the amount you must pay for 2008/2009, and then
  • add on any amounts you have still not paid from previous financial years.

Please note that

  • any transactions to your account after 13th March 2008 are not shown on your bill.;
  • if this is the first time you have received a rate bill for this property, and there is a balance outstanding from a previous period, this outstanding balance will be based on the Net Annual Value (NAV) of your property, rather than its capital value.

If you need more information about this, or if you have any questions, please contact our helpline on 0845 300 6360, minicom 0845 300 6361.

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Capping

If your home has a capital value (as at 1 January 2005) of more than £500,000 your rate bill will be automatically ‘capped’. This means that the amount you need to pay will be worked out as if your capital value was £500,000. This will be shown on your bill.

Transitional relief

Transitional relief helps those ratepayers who are most affected by the change to the capital value system to budget and plan for the new rate increases. This means that if your bill has increased by more than 33% above the amount you would have paid in rates for this property under the old NAV system, transitional relief will be provided automatically over a three-year period from 1 April 2007 to 31 March 2010.

  • In the first year (1 April 2007 to 31 March 2008), we will provide transitional relief on the full amount over the 33% threshold.
  • In the second year (1 April 2008 to 31 March 2009) we will provide it on two-thirds of the amount over the 33% threshold.
  • In the third year, (1 April 2009 to 31 March 2010) we will provide it on one-third of the amount over the 33% threshold.

From 1 April 2010, ratepayers will have to pay the full amount of rates.

Additional information on Transitional Relief and a Transitional Relief Calculator is also available.

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Non-domestic properties

We will continue to work out rate bills for non-domestic properties using the Net Annual Value (NAV) multiplied by the total of the non-domestic regional rate and the non-domestic district rate. If your property has mixed use, (such as a shop (non-domestic) with a flat (domestic) above it) each part will be assessed separately for rates.

Non-domestic vacant properties

Vacant non-domestic properties with a rateable value of £2000 or above are liable for vacant rating. This means that the person entitled to possession (usually the owner) is liable to pay 50% of the rates due after the three-month exemption period that applies to vacant properties.  Certain other exemptions may apply. For more information:

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